BRIDGEPORT, CT – People's United Financial, Inc. (NASDAQ: PBCT) today reported net income of $53.1 million, or $0.18 per share, for the first quarter of 2014, compared to $52.5 million, or $0.16 per share, for the first quarter of 2013, and $59.3 million, or $0.20 per share, for the fourth quarter of 2013. Operating earnings were $56.5 million, or $0.19 per share, for the first quarter of 2014, compared to $57.9 million, or $0.18 per share, for the first quarter of 2013, and $60.0 million, or $0.20 per share, for the fourth quarter of 2013

The Board of Directors of People's United Financial voted to increase the common stock dividend to an annual rate of $0.66 per share. Based on the closing stock price on April 16, 2014, the dividend yield on People's United Financial common stock is 4.4 percent. The quarterly dividend of $0.165 per share is payable May 15, 2014 to shareholders of record on May 1, 2014.

Barnes continued, "In what is typically a seasonally slower quarter for several of our businesses, I am pleased with annualized loan growth of four percent and organic deposit growth of 10 percent. At the same time we continue to maintain superior asset quality metrics. The increase in net interest income over the past several quarters primarily reflects growth in the loan portfolio despite a challenging interest rate environment and less interest income on acquired loans."

Barnes concluded, "We are pleased to announce our 22nd consecutive annual dividend increase. Our strong business fundamentals, ongoing ability to leverage our brand in attractive markets, and prospects for growth continue to be the foundations of our strength relative to others in the industry."

"The net interest margin reflects the impact of continued strong loan originations, two fewer days in the quarter and higher average balances in the investment portfolio," stated Kirk W. Walters, Senior Executive Vice President and Chief Financial Officer. "Our ability to control operating expenses, considering the number of strategic investments we made and the increasing cost of regulatory compliance, remains an important area of focus."

Walters concluded, "We certainly are pleased with the sustained improvement in asset quality. Our low loan charge-off ratio is a reflection of the Company's historically strong underwriting standards, the economic strength of the geography in which we operate and the resilience of our customers. Of note, both the loan charge-off and non-performing loans to originated loans ratios this quarter were the lowest each has been in six years."

Net loan charge-offs as a percentage of average total loans on an annualized basis were 0.12 percent in the first quarter of 2014 compared to 0.18 percent in the fourth quarter of 2013 and 0.24 percent in the first quarter of 2013. For the originated loan portfolio, non-performing loans equaled 0.84 percent of loans at March 31, 2014, compared to 0.95 percent at December 31, 2013 and 1.25 percent at March 31, 2013.

Operating return on average assets was 0.69 percent for the first quarter of 2014, compared to 0.75 percent for the fourth quarter of 2013 and 0.77 percent for the first quarter of 2013. Operating return on average tangible stockholders' equity was 9.3 percent for the first quarter of 2014, compared to 9.8 percent for the fourth quarter of 2013 and 8.1 percent for the first quarter of 2013.

At March 31, 2014, People's United Financial's tier 1 common and total risk-based capital ratios were 10.1 percent and 11.2 percent, respectively, and the tangible equity ratio stood at 8.0 percent. People's United Bank's tier 1 and total risk-based capital ratios were 11.0 percent and 12.2 percent, respectively, at March 31, 2014.

People's United Financial, a diversified financial services company with $33 billion in assets, provides commercial and retail banking, as well as wealth management services through a network of 406 branches in Connecticut, New York, Massachusetts, Vermont, New Hampshire and Maine. Through its subsidiaries, People's United Financial provides equipment financing, brokerage and insurance services. Assets managed and administered, which are not reported as assets of People's United Financial, totaled $15.9 billion at March 31, 2014 compared to $16.0 billion at December 31, 2013.

1Q 2014 Financial Highlights

Summary

Net income was $53.1 million, or $0.18 per share.

Operating earnings were $56.5 million, or $0.19 per share.

Net interest income on a fully taxable equivalent basis increased $2.3 million from 4Q13 and totaled $231.8 million in 1Q14.

Interest income on acquired loans decreased $3.1 million from 4Q13 to $23.3 million.

Net interest margin decreased seven basis points from 4Q13 to 3.17%.

The effects of two fewer calendar days and new loan volume at lower rates both impacted the margin by five basis points.

An increase in average investment balances benefited the margin by three basis points.

Bank service charges decreased $1.3 million from 4Q13, in part due to the seasonal nature of certain transaction-related fee categories.

Brokerage commissions decreased $0.5 million from 4Q13.

Assets under administration and those under full discretionary management, neither of which are reported as assets of People's United Financial, totaled $10.8 billion and $5.1 billion, respectively, at March 31, 2014.

Non-interest expense totaled $216.7 million in 1Q14 compared to $208.7 million in 4Q13.

Operating non-interest expense was $211.5 million in 1Q14 compared to $207.7 million in 4Q13.

On April 17, 2014, at 8 a.m., Eastern Time, People's United Financial will host a conference call to discuss this earnings announcement. The call may be heard through www.peoples.com by selecting "Investor Relations" in the "About Us" section on the home page, and then selecting "Conference Calls" in the "News and Events" section. Additional materials relating to the call may also be accessed at People's United Bank's web site. The call will be archived on the web site and available for approximately 90 days.

Certain statements contained in this release are forward-looking in nature. These include all statements about People's United Financial's plans, objectives, expectations and other statements that are not historical facts, and usually use words such as "expect," "anticipate," "believe," "should" and similar expressions. Such statements represent management's current beliefs, based upon information available at the time the statements are made, with regard to the matters addressed. All forward-looking statements are subject to risks and uncertainties that could cause People's United Financial's actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors of particular importance to People’s United Financial include, but are not limited to: (1) changes in general, national or regional economic conditions; (2) changes in interest rates; (3) changes in loan default and charge-off rates; (4) changes in deposit levels; (5) changes in levels of income and expense in non-interest income and expense related activities; (6) residential mortgage and secondary market activity; (7) changes in accounting and regulatory guidance applicable to banks; (8) price levels and conditions in the public securities markets generally; (9) competition and its effect on pricing, spending, third-party relationships and revenues; (10) the successful integration of acquisitions; and (11) changes in regulation resulting from or relating to financial reform legislation. People's United Financial does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.